gas gouging being good economics
 

Last night I saw gas for $6.00/gallon but I thought it was a good
thing for the station owner. The station was a quickie type market
where they do not make much profit on gas sales and mostly rely on gas
sales to bring in customers to the store. If he sold all his gas at a
reasonable price, he would have no more customers for his store.
Dissuading people from buying a lot makes his supply last longer and
so he will have customers for his store. I think he is being
reasonable.

gas gouging being good economics
 

gas gouging being good economics
 

On Sep 13, 1:29 pm, hk wrote:
wrote:
Last night I saw gas for $6.00/gallon but I thought it was a good
thing for the station owner. The station was a quickie type market
where they do not make much profit on gas sales and mostly rely on gas
sales to bring in customers to the store. If he sold all his gas at a
reasonable price, he would have no more customers for his store.
Dissuading people from buying a lot makes his supply last longer and
so he will have customers for his store. I think he is being
reasonable.

It figures you would. So long as the public bends over and someone else
is making a profit from it, well, that's just fine, eh?

The station owner, typically a local person IS the public and
typically makes less than HK did as a union organizer.

gas gouging being good economics
 

gas gouging being good economics
 

wrote in message
...

The station owner, typically a local person IS the public and
typically makes less than HK did as a union organizer.

Thank you.

Eisboch

gas gouging being good economics
 

gas gouging being good economics
 

TJ wrote:
wrote:
Last night I saw gas for $6.00/gallon but I thought it was a good
thing for the station owner. The station was a quickie type market
where they do not make much profit on gas sales and mostly rely on gas
sales to bring in customers to the store. If he sold all his gas at a
reasonable price, he would have no more customers for his store.
Dissuading people from buying a lot makes his supply last longer and
so he will have customers for his store. I think he is being
reasonable.

It's not "gouging" unless his customers are somehow forced to buy gas
from him. As long as they have a choice, he can charge $20 a gallon if
he wants to. It also depends on his expenses. There is no law that I
know of that compels somebody to sell at a loss.

One of the things I do for a living is sell sweet corn. Right now, my
corn is $3 a dozen. I have a lot of corn ready, and if I don't sell it,
I'll lose money on things like fuel and fertilizer that I used to grow
it. The guy down the street is selling his for $3.75. Is he gouging?
Nope. His big rush of corn was last week, and he doesn't have as much
right now. He also has a mortgage that I don't have, adding to his
expenses. He is charging what he needs to to turn a profit. He's not
gouging.

Now, if we both got together and decided to charge $6 a dozen, we'd be
gouging. We'd also soon be out of business, because we wouldn't sell
enough to cover our fixed expenses. Price gouging is extremely bad for
business.

TJ


Price gouging is illegal in some states.

In Florida, for example:

""Attention consumers and businesses. A state of emergency has been
declared in Florida by the Governor. Because of this emergency, price
gouging laws are now in effect. To protect consumers, these laws make it
illegal for individuals or businesses to charge exorbitant prices for
essential goods and services. These include food, ice, lumber, fuel,
generators, lodging and other necessities. Those found guilty of price
gouging can face fines for each violation. Price gouging is a crime. If
you witness it, report it to us by calling 1-800-HELP-FLA or visiting
www.800helpfla.com. We'll investigate, and we'll take action.” Florida
Department of Agriculture and Consumer Services Charles H. Bronson,
Commissioner."

Now, of course, one has to define gouging. Raising the price of gasoline
about $2.00 overnight might qualify as gouging in some states.

gas gouging being good economics
 

On Sep 13, 9:43 pm, hk wrote:
TJ wrote:
wrote:
Last night I saw gas for $6.00/gallon but I thought it was a good
thing for the station owner. The station was a quickie type market
where they do not make much profit on gas sales and mostly rely on gas
sales to bring in customers to the store. If he sold all his gas at a
reasonable price, he would have no more customers for his store.
Dissuading people from buying a lot makes his supply last longer and
so he will have customers for his store. I think he is being
reasonable.

It's not "gouging" unless his customers are somehow forced to buy gas
from him. As long as they have a choice, he can charge $20 a gallon if
he wants to. It also depends on his expenses. There is no law that I
know of that compels somebody to sell at a loss.

One of the things I do for a living is sell sweet corn. Right now, my
corn is $3 a dozen. I have a lot of corn ready, and if I don't sell it,
I'll lose money on things like fuel and fertilizer that I used to grow
it. The guy down the street is selling his for $3.75. Is he gouging?
Nope. His big rush of corn was last week, and he doesn't have as much
right now. He also has a mortgage that I don't have, adding to his
expenses. He is charging what he needs to to turn a profit. He's not
gouging.

Now, if we both got together and decided to charge $6 a dozen, we'd be
gouging. We'd also soon be out of business, because we wouldn't sell
enough to cover our fixed expenses. Price gouging is extremely bad for
business.

TJ

Price gouging is illegal in some states.

In Florida, for example:

""Attention consumers and businesses. A state of emergency has been
declared in Florida by the Governor. Because of this emergency, price
gouging laws are now in effect. To protect consumers, these laws make it
illegal for individuals or businesses to charge exorbitant prices for
essential goods and services. These include food, ice, lumber, fuel,
generators, lodging and other necessities. Those found guilty of price
gouging can face fines for each violation. Price gouging is a crime. If
you witness it, report it to us by calling 1-800-HELP-FLA or visitingwww.800helpfla.com. We'll investigate, and we'll take action.” Florida
Department of Agriculture and Consumer Services Charles H. Bronson,
Commissioner."

Now, of course, one has to define gouging. Raising the price of gasoline
about $2.00 overnight might qualify as gouging in some states.

Most people in this group are far more affluent than most small
station owners yet you rich people want to tell a poor station owner
that he has to lose money just so you can have cheap fuel. Most
station owners barely break even on fuel but make their money on sales
of merchandise.
For that matter, after a disaster and you need ice, THANK GOD for the
guy who has ice and sells it for $10.bag. If you wait for govt help,
you wont get it till its too late. Somebody who sees the need and
manages to get ice to somehwere that needs it by some unusual means
deserves what he charges.

gas gouging being good economics
 

On Sat, 13 Sep 2008 19:45:24 -0700 (PDT),
wrote:


For that matter, after a disaster and you need ice, THANK GOD for the
guy who has ice and sells it for $10.bag. If you wait for govt help,
you wont get it till its too late. Somebody who sees the need and
manages to get ice to somehwere that needs it by some unusual means
deserves what he charges.

Sounds like the disaster gouging business is a good one.
But it's seasonal and spotty.
Ever think of starting up a franchising corporation?
A good one might be using them airboats.
Save people off rooftops if they sign over their bank accounts.
I sure would trade my money for my life.
But I won't get in if it doesn't have a muffler.

--Vic

gas gouging being good economics
 

On Sep 13, 10:58 pm, Vic Smith
wrote:
On Sat, 13 Sep 2008 19:45:24 -0700 (PDT),
wrote:

For that matter, after a disaster and you need ice, THANK GOD for the
guy who has ice and sells it for $10.bag. If you wait for govt help,
you wont get it till its too late. Somebody who sees the need and
manages to get ice to somehwere that needs it by some unusual means
deserves what he charges.

Sounds like the disaster gouging business is a good one.
But it's seasonal and spotty.
Ever think of starting up a franchising corporation?
A good one might be using them airboats.
Save people off rooftops if they sign over their bank accounts.
I sure would trade my money for my life.
But I won't get in if it doesn't have a muffler.

--Vic

Of course we like it when people respond to disaster simply by
donating time and whatever else is needed. However, i see nothing bad
and a lot good about so-called price gouging. Same goes for ticket
scalping as far as I am concerned. Profit will motivate people to get
goods that are not needed for lifesaving to a place far faster than
other incentives. Goods needed for lifesaving are definitely
different than goods needed to maintain a comfortable life. Most of
us will donate enough to get people through a disaster but if someone
wants to get his house done faster by paying $150 for a sheet of
plywood, I have no problem with it.